Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Netflix, Inc. (NFLX) Still A “Buy” Despite Subscription Concerns: Stifel Nicolaus

Stifel Nicolaus has opted to upgrade Netflix, Inc. (NASDAQ:NFLX) to a ‘Buy’ from a’ Hold’, despite holding huge reservation that a further decline in subscription numbers could plummet the stock even further in the market. During an interview on CNBC, the firm’s senior research analyst, Scott Devitt, reiterated that a decline in subscriptions in the U.S could, on the other hand, be offset by the ongoing growth in international markets.

Netflix, is NFLX a good stock to buy, Neil Hunt, 4K streaming, challenges, H.265, ultra high definition,

“Last quarter, the third quarter the company started to show indication of making a transition where international growth is becoming a bigger contributor to growth. With that, the transition is somewhat tricky because the U.S business drives more of the profitability of the company,” said Mr. Devitt.

Netflix, Inc. (NASDAQ:NFLX) has plummeted to levels it was trading at after reporting below par third quarter earnings last year;  having been affected by concerns about the ongoing decline in subscriptions back at home. The analyst remains confident that the ongoing growth of subscription on the international market could push the stock up, by a further 30% going forward.

The analyst also affirms that Netflix, Inc. (NASDAQ:NFLX) could plummet a further 10-15% in instances where the growth in subscriptions does not gain momentum as highly expected. Devitt also affirms that Netflix is the better option when compared to HBO with its market cap of $20 billion compared to the latter’s $30 billion, which is expected to offer the biggest test in terms of competition going forward.

Despite recent concerns about Netflix, Inc. (NASDAQ:NFLX) growth rate, the analyst asserts that the company is poised to grow at a higher rate based on its business model compared to those of its competitors.

“If you think about the comparative growth characteristics of Netflix, Inc. (NASDAQ:NFLX) vs. HBO, Netflix is going to grow at a faster rate. They have a better business model because it is direct, and they can offer better prices to consumers even if HBO chooses to go direct,” said Mr. Devitt.

 Push for international growth according to the analyst should be one of the drivers behind the company’s subscriptions in the long term, having been under immense scrutiny from the Street.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!